FHA Loans

Are government-backed loans insured by the Federal Housing Administration, designed to help low-to-moderate-income borrowers qualify for home financing.

  • Requires lower minimum credit scores and down payments compared to conventional loans, making them accessible to first-time homebuyers and those with less-than-perfect credit.

  • Typically, borrowers can make a down payment as low as 3.5% of the purchase price.

  • FHA loans also allow for higher debt-to-income ratios, providing more flexibility in qualifying.

  • They do require mortgage insurance premiums (MIP) both upfront and annually, which protect lenders against defaults.

  • These loans are available for various property types, including single-family homes.

Summary

  • Loan limit varies by county. Use to look county limit: https://entp.hud.gov/idapp/html/hicostlook.cfm

  • Credit:

    • 580+ with 3.5% down payment.

    • 500-579 requires 10% down payment and automated underwriting approval.

      • Manual underwriting is not allowed.

      • Maximum 45% DTI. 2-months reserves.

      • If all buyers are 1st time buyers one must take homeownership education course.

      • 620 minimum required for Manufactured Homes.

  • The perfect match for DPA, (Down Payment Assistance)

    • Ga Dream, see guidelines and benefits

    • We have four in-house programs, Ga. Dream, and Chenoa.

    • Cash-Out loans up to 85% of the home’s value.